MINISTRY OF DEFENCE Manatῡ Kaupapa Waonga - STATEMENT OF INTENT
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G.4 SOI (2021) G.4 SOI (2021) MINISTRY OF DEFENCE Manatῡ Kaupapa Waonga STATEMENT OF INTENT Tauākī Whakamaunga Atu 2021-2025 defence.govt.nz
Published in October 2021 on the Ministry of Defence website: defence.govt.nz ISSN: 2463-6436 (online only) The Ministry of Defence administers the Defence Act 1990. This page: Ministry staff working on a new organisational strategy Cover page: Aerial imagery of the P-8A hangar construction at Ōhakea in September 2020 Crown Copyright © 2021, with images by the New Zealand Defence Force and Ministry of Defence. This copyright work is licensed under the Creative Commons Attribution 4.0 International licence. In essence, you are free to copy, distribute and adapt the work, as long as your attribute the work to the Crown and abide by the other licence terms. To view a copy of this licence, visit https://creativecommons.org. Any use of flags, emblems, names or works protected by the Flags, Emblems, and Names Protection Act 1982 must not infringe on the provisions of that Act. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
CONTENTS Foreword by the Minister of Defence He mihi nā te Minita Kaupapa Waonga 4 Introduction by the Secretary of Defence He kupu whakataki nā Te Tumu Whakarae mō te Waonga 5 The Government’s Direction for Defence Te Aronga a te Kāwanatanga mō ngā Kaupapa Waonga 7 Our Role Tā Mātou Mahi 9 Our Strategic Direction Tō Mātou Aronga Rautaki 15 The Ministry’s 2021-2025 Strategy 17 Supporting talented and diverse people Te taunaki i ngā tangata ihumanea matahuhua 18 Informing decisions with strategic insight Te whakamōhio i ngā whakatau mā te rautaki 19 Delivering to strengthen national security Te koke kia kaha ake ai te haumarutanga ā-motu 23 Engaging New Zealanders on defence Te whakatoro i te kaupapa waonga ki a Ngāi Aotearoa 30 Our Capability Ō Mātou Āheinga 31 STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 3
FOREWORD BY THE MINISTER OF DEFENCE HE MIHI NĀ TE MINITA KAUPAPA WAONGA Manatū Kaupapa Waonga safeguards I looking forward to working with the Ministry and its New Zealand, by keeping the Government staff, alongside the New Zealand Defence Force, to appraised of changes in the strategic environment, progress the priorities in the Defence portfolio. providing policy advice to support Government decision making and delivering investments in capability for the New Zealand Defence Force. The Ministry of Defence’s assessment of the strategic environment, and advice on possible implications for New Zealand’s interests and Hon Peeni Henare Defence Force capabilities, will enable Defence to Minister of Defence be well placed to respond to global security challenges. Minita Kaupapa Waonga The Government is focussed on Defence people and prioritising investment in key infrastructure to support Defence Force activities. In investing in MINISTERIAL STATEMENT OF infrastructure in New Zealand, Defence has a vital RESPONSIBILITY role in supporting the New Zealand economy. I am satisfied that the information on strategic The successful delivery of significant new intentions prepared by the Ministry of Defence is capabilities for the New Zealand Defence Force will consistent with the policies and performance be a key activity for the Ministry over the next few expectations of the Government. years. One of my first acts as Minister of Defence in December 2020 was to attend an official sod-turning ceremony for Te Whare Toroa at Ōhakea Air Force Base. This is the site for the new hangar to house 5 Squadron and the new P-8A Poseidon maritime patrol aircraft that will start to arrive in 2023. The first of five new C-130J-30 Hercules transport Hon Peeni Henare aircraft are due to arrive in 2024. This project also Minister of Defence includes a flight simulator and other supporting Minita Kaupapa Waonga infrastructure to replace the existing fleet. These and other projects being delivered by the Ministry are important to ensure that the Defence Force is well equipped and positioned for the range of tasks required of it by Government. The Ministry will also continue to work with the Defence Force to implement the recommendations from the Operation Burnham Inquiry, including the establishment of a new independent Inspector- General of Defence. Another core focus area for the Defence portfolio is working with our international partners, particularly in the Pacific. While maintaining people to people Minister of Defence, Hon Peeni Henare (right), at the April 2021 links throughout the pandemic is challenging, it is opening of Te Pokapῡ Whakauru Māia, the Capability Integration important that we keep in touch and continually look Centre at Linton Army Camp for new opportunities to work together. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
INTRODUCTION BY THE SECRETARY OF DEFENCE HE KUPU WHAKATAKI NĀ TE TUMU WHAKARAE MŌ TE WAONGA The Ministry of Defence, Manatū Kaupapa Waonga, The Ministry’s people are its greatest asset. We will Statement of Intent 2021-25 articulates the develop a new People Strategy that ensures our Ministry’s new strategy and priorities for the next talented staff continue to be developed and we have four years. This includes a new purpose, vision and a diverse work force that feels valued and included. areas of focus for the Ministry. In line with government expectations the Ministry The new strategy was developed through a process will operate in ways that maintain public trust and involving all staff and will ensure that the Ministry is confidence, embody and promote New Zealand well positioned for the future. values, and contribute to an international reputation we can be proud of. We will work with the NZDF to Our new purpose is Safeguarding New Zealand; Kia implement the recommendations of the Operation tū pakari ai te pā tūwatawata o Aotearoa. Burnham Inquiry, the Expert Review Group We safeguard New Zealand through the advice we conducted in response to the Inquiry, and the provide government on defence policy, our establishment of an Inspector-General of Defence. assessments of the security environment, and how The Ministry will also be enhancing its public we should respond to regional and international communications and increased transparency of security challenges, for example with deployments Defence decisions. of our Defence Force. The Ministry and its staff are focussed on The Ministry plays a critical role in ensuring that the responding to the challenges of the current global New Zealand Defence Force (NZDF) is well environment and through our work, safeguarding equipped to conduct the tasks asked of it by New Zealand. government to safeguard New Zealand, with around $5.8 billion worth of capability projects under active management. This includes the replacement of the Air Force’s maritime surveillance and strategic airlift platforms, which will be delivered within the duration of this plan. Andrew Bridgman Our new vision is Thought leaders strengthening Secretary of Defence national security in an uncertain world; Ko mātou Te Tumu Whakarae mō te Waonga ngā kaitātaki whakaaro e whakakaha ana i tō tātou haumarutanga ā-motu i tēnei ao pāhekeheke. The global security environment has become substantially more challenging and this trend is likely to continue in coming years. The COVID-19 pandemic has intensified and accelerated pre- existing trends, in addition to its substantial direct impacts on human health, wellbeing, and the economy. A new focus for the Ministry is to strengthen our capabilities to utilise data insights to inform Defence advice. We will also continue to build our understanding of military matters and experience in engaging the NZDF, to inform our advice. Engagement with international and domestic The New Zealand Army performs a Death Gun Salute for the partners, including the Defence Industry is an passing of HRH Prince Philip, Duke of Edinburgh. This included the Minister of Defence, Chief of Defence Force and Secretary essential element of our work and we will be of Defence (front) progressing new initiatives in this area. In particular we will be looking for opportunities to assist our Pacific partners address security challenges STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 5
CHIEF EXECUTIVE STATEMENT OF RESPONSIBILITY In signing this statement, I acknowledge that I am responsible for the information on strategic intentions for the Ministry of Defence. This information has been prepared in accordance with section 38 and section 40 of the Public Finance Act 1989. Andrew Bridgman Secretary of Defence Te Tumu Whakarae mō te Waonga P-8A hangar construction at Royal New Zealand Air Force Base Ōhakea in July 2020 STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
1 THE GOVERNMENT’S DIRECTION FOR DEFENCE Te Aronga a te Kāwanatanga mō ngā Kaupapa Waonga ●●●● 2 Transfer of COVID-19 vaccines and medical supplies by Defence Force personnel to the Nukunonu Atoll in the Tokelau Islands STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 7
Defence is made up of two agencies: the Ministry of To lay the foundations for a better Defence and the New Zealand Defence Force. The future: The most important Defence Ministry contributes to the achievement of Defence 3 capability is people. This includes outcomes by: looking carefully at gender equity, diversity and inclusion. This will ensure that the providing the Government with policy advice Ministry reflects the community it serves. concerning defence and security issues, Implementing the recommendations of the Report of including the security environment, the military the Government Inquiry into Operation Burnham capabilities of the Defence Force, the and related matters will ensure Defence structures deployment of military forces and the conduct and processes are robust, fit for purpose as well as of international defence relations transparent and accountable into the future. Ministry delivering major platforms and items of military assessments, advice and engagement with equipment for use by the Defence Force when international partners contributes to ensuring a undertaking defence and security tasks secure, stable, and resilient region and that New Zealand can make contributions to global undertaking audits and assessments to security into the future. The Ministry’s work on examine and help improve Defence efficiency engagement in the Pacific is an important part of and effectiveness. this. The Government has set three key objectives: To deliver on government policy intentions, the To keep New Zealanders safe from Defence agencies undertake long-term planning to COVID-19: The New Zealand Defence allow for sustainable, high-value investments to be 1 Force’s continued provision of considered. approximately 1,200 personnel to the Delivering on Government investment decisions will Government’s COVID-19 response remains a provide the Defence Force with the capabilities critical focus. The Ministry’s work delivering major required to give effect to the Government’s policy defence capabilities ensures the Defence Force is intentions. well-placed to respond when tasked by Government and is prepared to safeguard New Zealand. This includes key platform replacements – including five C-130J-30 Hercules transport aircraft to replace To accelerate our economic the existing fleet of C-130H Hercules, and four P-8A recovery: the Ministry’s work on major 2 Defence capability projects creates Poseidon maritime patrol aircraft to replace New Zealand’s aging P-3K2 Orion fleet. opportunities for New Zealand businesses – either directly or indirectly through partnership with international prime contractors. This includes major infrastructure work at Base Ōhakea to support the new P-8A Poseidon maritime surveillance aircraft that will be based there from 2023. Defence is engaging New Zealand businesses with niche technical expertise to provide surge capacity to further critical aspects of capability projects. Republic of Fiji Military Forces unload humanitarian aid and disaster relief supplies from an RNZAF C-130H Hercules, following tropical cyclone Harold STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
OUR ROLE AND FUNCTIONS Ko mātou ngā kaitohutohu matua ki te kāwanatanga mo ngā kaupapa waonga. Nā mātou hoki, ngā taputapu nunui i hoko, hei āheitanga i roto i ngā ringa o ngā tāne me ngā wahine o Te Ope Kātua o Aotearoa. The Ministry of Defence is the Government’s lead civilian advisor on defence. We provide civilian advice on defence matters to enhance the security and interests of New Zealand and its people. We also purchase major equipment which becomes a capability when it is used by service men and women of the Defence Force. To carry out our role, the Ministry: provides analysis and advice on New Zealand’s national security and defence interests and challenges, across both the short and long terms advises the Government on how our Defence Force can meet current challenges (such as potential deployments) and possible future challenges purchases major defence equipment for use by the Defence Force as a defence capability1 builds and maintains strong defence relationships internationally advises on Defence’s performance and effectiveness as a system. The Ministry works closely with the New Zealand Defence Force and other agencies to carry out these activities. It also builds and maintains strong defence connections through defence engagement with other governments throughout the world, including our ally Australia, so that New Zealand can contribute to the security of the Pacific region, and play our part in addressing defence and security challenges internationally. The Ministry’s work can have immediate impact, such as our advice to deploy Defence Force Sod turning for the new facilities at Ōhakea as part of personnel, or long-term implications by determining the Air Surveillance Maritime Patrol project, involving and delivering the military capabilities the Defence Chief of Air Force, Andrew Clark, Minister of Defence, Force will operate to deliver on the Government’s Hon Peeni Henare, and Deputy Secretary Capability expectations well into the future. The Ministry also Delivery, Mike Yardley has a role in shaping how New Zealand understands and approaches defence and security matters. 1 In the Defence context, ‘capability’ refers to the personnel, equipment, platforms, and/or other resources that affect the capacity to undertake military operations. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
WE INFORM AND IMPLEMENT THE Based on the Government’s direction, Defence develops long-term plans on how these intentions GOVERNMENT’S POLICY FOR translate into Defence activities and capability DEFENCE requirements. This includes the Defence Capability Plan that sets out the detailed capability The Ministry assesses New Zealand’s strategic requirements to deliver on these policy settings – environment and the implications for New Zealand’s including the people, research and development, defence policy settings. infrastructure, processes, information technology, The Government sets its strategic direction for how equipment, and logistics. it expects Defence to respond to these challenges, The Plan allows the Government to communicate its which the Ministry and Defence Force implement Defence capability priorities to the public, industry, together. This direction sets the roles and tasks the and international partners. It does not represent a Defence Force is expected to undertake, and guides final commitment by the Government, as each choices and priorities in making capability investment is subject to approval of a business case purchases, building international defence that justifies the proposed investment and funding relationships, and assessing risk and performance. being available through the Budget process. Formal Defence Assessment Examines the strategic outlook and Government direction on Defence Force roles and tasks implications for New Zealand – informing the Public expression of the Government’s defence policy goals Government’s Defence policy goals Public document on the broad timing and scope of intended defence capability procurement activity over the long-term (Defence Capability Plan) Regular focused defence assessments Publicly describes the capability sets needed to deliver Inform the formal Defence Assessment the Government’s defence policy Figure 1: How the Ministry informs and implements the Government’s policy for Defence partnership and collaboration. Contacts are WE WORK IN PARTNERSHIP WITH extensive and deep, with all Ministry staff interacting THE DEFENCE FORCE AND with Defence Force counterparts on a daily basis. INTERNATIONAL PARTNERS The Ministry maintains strong and sustainable Under the Defence Act 1990, the Secretary of defence relationships with international partners and Defence is the lead civilian advisor on defence leads strategic thinking to inform Defence policy that matters and the Chief of Defence Force is the lead supports a resilient New Zealand. The Ministry’s military advisor and senior military officer. Together, work supports the Government to make the best the Defence agencies deliver on the Minister of decisions on the direction and tasking of the Defence’s priorities for the defence portfolio. Defence Force. This includes support for decisions on the deployment of Defence Force personnel, and The separation between the two agencies is part of decisions with long-term implications regarding the New Zealand’s constitutional arrangements. capabilities the Defence Force has in place to The Ministry and New Zealand Defence Force work deliver on the Government’s expectations in the very closely together; drawing on their strong, future. The Ministry also supports the Defence separate civilian and military perspectives. Force to efficiently deliver on Government’s expectations. The relationship between the two agencies is led by the two chief executives and is one of deep STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 11
Command of the Navy, Army, Air Force & Assessment and Lead Civilian Advice Joint Forces; and Lead Military Advice PROTECT: PREPARED: INFORM: VETERANS New New Zealand’s Reviews Navy, Army & PROJECT: Providing AFFAIRS: Zealand’s strategic Defence system directed by Air Force Armed advice and Respecting sovereignty capabilities forces at the supporting Veterans environment and performance the Minister of generated for and provide direction of Government and security to interests Defence joint Government decision- honouring New operations marking Service Zealanders Government to Government Military to Military Managing international defence relationships Managing defence capability (accountability shared by the Secretary of Defence and Chief of Defence Force) Strategic Policy Capability Definition Acquisition Introduction into In Service Disposal & Selection Service Primary responsibility of the Ministry Primary responsibility of the NZDF Collaboration with other defence and wider security sector agencies Figure 2: Respective roles of the Ministry of Defence and New Zealand Defence Force WE ARE PART OF THE NATIONAL SECURITY SECTOR The Ministry is a lead policy agency in the national security sector. Sector agencies are expected by Government to operate in a consistently integrated way. This is to achieve: coherent and consistent advice to Ministers on national security, foreign policy, intelligence and defence issues the maximum whole of sector performance from the available resources the ability to adapt quickly to changes in the strategic and security environment, including sudden changes that may occur without warning improved attraction, development and retention Reviewing staff feedback as part of developing the of skilled people, by providing career pathways Ministry’s organisational strategy across the agencies that work on national security issues, as well as with other sectors. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
The Ministry engages with a number of government agencies to deliver its work. GOVERNMENT NEW ZEALAND SECURITY COMMUNICATIONS INTELLIGENCE SERVICE SECURITY BUREAU NEW ZEALAND POLICE NEW ZEALAND CUSTOMS SERVICE NEW ZEALAND DEFENCE FORCE Strategic Partner DEPARTMENT OF MINISTRY OF BUSINESS, INTERNAL AFFAIRS INNOVATION AND EMPLOYMENT MINISTRY DEPARTMENT OF THE NATIONAL MARITIME MARITIME NEW ZEALAND MINISTRY OF FOREIGN AFFAIRS AND TRADE OF PRIME MINISTER AND CABINET COORDINATION CENTRE DEFENCE ANTARCTICA MINISTRY OF HEALTH NEW ZEALAND THE TREASURY TE KAWA MATAAHO MINISTRY FOR PRIMARY OFFICE OF THE AUDITOR INDUSTRIES GENERAL CROWN LAW AUDIT NEW ZEALAND Figure 3: Government agencies that the Ministry works with OUR STAKEHOLDERS The Ministry’s work programme is often determined The Minister of Defence: We deliver policy directly by Ministerial and Cabinet decisions. Our advice and assessments. customers are: New Zealand Defence Force personnel: We The Government: With the New Zealand deliver safe, effective systems and equipment Defence Force, we deliver the people, that become a defence capability for New relationships, policies and capabilities to meet Zealand when used by Defence Force service the Government’s policy objectives. men and women. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 13
ASEAN Defence Ministers’ Meeting-Plus meeting using videoconferencing under the COVID-19 lockdown in 2020 STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
3 OUR STRATEGIC DIRECTION Tō Mātou Aronga Rautaki ●●●● STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 15
OUR OPERATING ENVIRONMENT Defence operates in a dynamic environment. The Uncertainty will always be a feature of the global quality of the Ministry’s performance over the next environment, and the intersection of multiple drivers four years will depend on how well it responds to will inevitably produce strategic surprises. Out of challenges that are both external and internal to the this complex global landscape, however, we have Ministry, some of which may arise without warning. identified two significant and compounding challenges that we judge will have the greatest To be successful, the Ministry must: impact on New Zealand’s security interests over the understand and advise on changes and trends medium-to-long term: in the security environment strategic competition, and support the Defence Force to carry out its roles climate change. and tasks These challenges are already affecting the strategic contribute to the work of the national security environment, and will intersect with other trends and sector. discrete events. The global COVID-19 pandemic, as a particularly acute example, has intensified and NEW ZEALAND IS SUBJECT TO accelerated pre-existing trends in addition to its MAJOR NEGATIVE GEOSTRATEGIC substantial direct impacts on human health, TRENDS wellbeing and security. Overall, New Zealand’s strategic environment has Since the end of World War Two, New Zealand has become substantially more challenging, and this benefited from a strategic environment primarily trend is likely to continue and accelerate in coming defined by an international rules-based system that years. New Zealand, together with its defence and reflected New Zealand’s values and supported its security partners, faces a future strategic interests. While imperfect, the system of environment that will be much worse than that of the international law, norms and institutions contributed recent past. to broad stability, provided safeguards against major conflict, and enabled collective action on a range of issues. Today, with the world undergoing a period of major geopolitical change, New Zealand can no longer rely, as it has previously, on the consistency and coherence of that system to protect its interests. Indonesian soldiers help offload 10.6 tonnes of aid supplies brought by an RNZAF C-130H Hercules aircraft to Palu, the Indonesian port city devastated by a 7.5 magnitude earthquake and tsunami in September 2018 STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
THE MINISTRY’S 2021-2025 STRATEGY OUR STRATEGIC FOCUS The Ministry has developed a new organisational strategy to apply from 1 July 2021. This identifies a new Purpose and Vision for the Ministry: OUR PURPOSE Safeguarding New Zealand TĀ MĀTOU KAUPAPA Kia tū pakari ai te pā tūwatawata o Aotearoa OUR VISION Thought leaders strengthening national security in an uncertain world TĀ MĀTOU WAWATA Ko mātou ngā kaitātaki whakaaro e whakakaha ana i tō tātou haumarutanga ā-motu i tēnei ao pāhekeheke The Ministry has identified four Focus Areas (Ngā Aronga) to deliver this Vision over the next three years. The objectives under each Focus Area are set out on the next pages. Supporting Informing talented and decisions with diverse people strategic insight Te taunaki i ngā Te whakamōhio i tangata ihumanea ngā whakatau mā matahuhuaI te rautaki Delivering to Engaging strengthen New Zealanders national security on defence Te koke kia kaha Te whakatoro i te ake ai te kaupapa waonga haumarutanga ā- ki a Ngāi motu Aotearoa How we measure our performance The Ministry’s performance is assessed against a range of measures, including Ministerial satisfaction surveys and an independent review of policy advice. For major Defence capability projects, there are measures of quality, timeliness and requirements, as well as delivery of benefits and forecasting. Assessments against these measures are reported in our Annual Report. During the course of 2021/22 the Ministry will develop additional measures to determine progress against new activities in the four Focus Areas. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 17
SUPPORTING TALENTED AND DIVERSE PEOPLE 1 TE TAUNAKI I NGĀ TANGATA IHUMANEA MATAHUHUA Our objectives What we’ll do A place where talented and diverse people feel included Develop and implement a new People Strategy, and able to do their best work including a diversity and inclusion strategy Prioritise unconscious bias and building cultural intelligence development for our people Ministry people are consistently supported and developed Create and implement a people leaders’ to be successful in their work development programme to ensure all staff are being developed and supported to be successful in their work The Ministry is culturally competent Develop our understanding of tikanga, te reo and te Tiriti The Ministry’s people are our greatest asset. We will develop a new People Strategy that ensures our talented staff are supported and developed to be successful in their work. We are committed to the kaupapa of having a workplace where everyone feels valued and included and that our staff reflect the diverse makeup of New Zealand society. We will focus on building our capability and understanding of tikanga, te reo and te Tiriti that recognises the Ministry’s contribution to Māori – Crown relations and strengthens our identity as an organisation anchored to this country. The Manatū Kaupapa Waonga o Te Rautaki Reo Māori plan outlines how we will use and celebrate te reo Māori throughout our publications and communications. This, and the Ministry’s Whāinga Ministry staff collaborating on the development of a new Amorangi Phase One Plan, will be regularly organisational strategy reviewed and updated to grow the Ministry’s capability. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
INFORMING DECISIONS WITH STRATEGIC INSIGHT 2 TE WHAKAMŌHIO I NGĀ WHAKATAU MĀ TE RAUTAKI Our objectives What we’ll do Everyone brings whole-of-Ministry insight to their work Develop a process to enable cross-agency teams to deliver organisational objectives Our decisions are visibly evidence-based Develop our capabilities to utilise data insights to inform Defence advice We bring a deep understanding of NZDF to decisions Supporting a structured programme of visits and engagements with NZDF camps, bases, exercises and capabilities Build our understanding of military matters and experience in engaging the NZDF to inform Ministry advice/decision making We engage thoughtfully with our stakeholders A deliberate customer engagement approach that involves Defence Industry, including: draft a Public Value and Progressive Procurement Policy identify opportunities for Māori and Pasifika business in Defence A new focus for the duration of this Statement of Providing insight Intent is to strengthen our capabilities to utilise data Insight informs all the Ministry’s work, but is insights to inform Defence advice. We will also build particularly important for our defence assessments, our understanding of military matters and reviews of defence policy settings, and for our experience in engaging the Defence Force to inform advice to government on defence deployments and our advice. defence capability investments, including the The Ministry works with the Defence Force, and defence estate. other partner agencies as appropriate, to produce Our work ensures that Defence is able to keep pace Defence planning scenarios for a range of roles and with changes in the international environment and tasks. These will support Defence Force’s planning possible implications for New Zealand’s national activities, including for capability development and security interests, defence policy and the contingency planning. capabilities required by the Defence Force to fulfil its roles and tasks. Collaboration with the national security Insight is built and given through the Ministry’s sector international defence engagements and academic Ministry insight also contributes to key Government outreach with partners, both domestically and priorities for the sector. These include whole-of- internationally. government activity on contemporary security issues, such as Pacific security, climate change, STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 19
space and cyber policy issues. The Ministry will New Zealand’s domestic and international security work closely with security sector partners to objectives, the overarching political and security leverage collective capability in order to meet new environment, human rights and legal considerations, and evolving security challenges. It will also work and the more specific question of how the Defence with sector partners to develop policy in new Force could best contribute to a particular mission. national security and defence policy areas. This will A central concern is always the safety and security ensure appropriate capability is being developed to of Defence Force personnel deployed overseas. meet New Zealand’s long term needs, and that the The Ministry also engages closely with counterparts sector is working together effectively and efficiently, from New Zealand’s security partners on without unnecessary duplication. (See also focus deployment activities. area 3.) Whether the New Zealand Defence Force will Advice on Defence Force deployments deploy, under what conditions and the level of commitment, is decided by the Government of the New Zealand deploys Defence Force personnel and day. assets overseas to contribute to major peace support operations, maritime security, logistics, International security challenges necessitating an training missions and other activities supporting the international military response are inherently international rules-based system. Each of these complex, requiring civilian and military advice. The international deployments is mandated by Cabinet, Ministry expects its role in providing policy advice in usually for periods of up to two years at a time. this space to continue to grow. The Ministry leads the development of advice to Mandates for current deployments that will expire Government on deployments, working in tandem during the period of this Statement of Intent for with the New Zealand Defence Force, Ministry of which the Ministry will prepare advice for Foreign Affairs and Trade and other agencies. This government include the following: advice considers a wide range of issues, including whether a contribution would support Figure 4: New Zealand Defence Force deployments as at early September 2021. This includes Antarctica logistics support and NZDF’s capacity-building work in the Pacific. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
Deployment Description Mandate Expiry Date Defeat ISIS Coalition Military contribution to the Defeat ISIS 30 June 2022 Coalition, countering violent extremism in (Iraq and Middle East Region) the Middle East Maritime Security and Stability Contribution to the Combined Maritime 30 June 2022 Operations in the Middle East Forces, including Combined Task Force 150 and UK Maritime Trade Organisation (Bahrain and Dubai) Multinational Force and Observers Contributing to a peace support operation 30 September 2022 Mission (MFO) in the Sinai Peninsula, including a New (main contingent) Zealand Force Commander and contingent (Sinai Peninsula, Egypt) 31 March 2023 (Force Commander contingent) UN Mission in South Sudan (UNMISS) Contributing to a peace support operation 30 June 2022 in North Africa (South Sudan) UN Treaty Supervision Organization Contributing to a peace support operation 30 September 2022 in the Middle East (Israel, Lebanon, Syria) Monitoring UN Security Council sanctions P-3K2 deployments in support of UN 30 September 2022 against North Korea sanctions against North Korea Operation Gallant Phoenix (Jordan) Multi-agency deployment to an intelligence 30 June 2023 fusion centre that counters violent extremism in all forms UN Command & Military Armistice Deployment supporting peace and stability 31 August 2023 Commission on the Korean Peninsula (Republic of Korea) STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 21
Engaging with industry Panel puts in place an open and proven pool of suppliers which project teams can directly access. It As part of our new strategy we will be taking a will support the efficient use of resources. deliberate customer engagement approach that involves Defence Industry. In December 2020, the Government announced that it will support economic and social outcomes for The cost of capability projects currently in delivery is Māori with a progressive procurement policy that around $5.8 billion. Much of this investment is still to targets Māori businesses. Cabinet agreed to set a be spent. Once introduced into service, the target for mandated government agencies, which capabilities currently in delivery will need to be includes the Ministry, to award five percent of their supported and maintained. The partnership this procurement contracts annually to Māori creates with Defence industry is deep and wide- businesses. ranging. Given the scale and complexity of the Government’s investment in Defence capability, The Ministry has commenced working with Amotai, prime contractors tend to be large international the New Zealand Government’s intermediary for suppliers. The opportunities, however, for supplier diversity working across the country to New Zealand companies to partner with prime connect government agencies to Maori and Pasifika contractors in the acquisition and through-life owned businesses. We are working closely with support of the capabilities acquired by the Ministry Amotai to identify opportunities and overcome are significant. barriers for Māori and Pasifika businesses to engage in the Defence sector. Given one of industry’s role is to support capability projects by providing specialist technical and COVID-19 has had an impact on many businesses, engineering expertise, the Ministry has streamlined including those in the Defence sector. The Ministry its approach to accessing this support. A Technical is regularly engaged through the New Zealand and Support Services Panel has been established Defence Industry Association (NZDIA) and the to provide access to support in such areas as test New Zealand Defence Industry Advisory Council procedures, technical evaluations, assistance with (NZDIAC) to monitor the health of the sector and due diligence, and as the technical authority in the identify any opportunities to further support design and build of platforms. Previously these businesses. services were provided on an ad hoc basis. The Deputy Secretary Capability Delivery, Mike Yardley, presents at an event awarding a Minister of Defence Award of Excellence to CAE New Zealand for work installing the NH90 simulator STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
DELIVERING TO STRENGTHEN NATIONAL SECURITY 3 TE KOKE KIA KAHA AKE AI TE HAUMARUTANGA Ā-MOTU Our objectives What we’ll do The Ministry is influential internationally and across the Targeted international engagement informed by a national security sector regularly refreshed International Defence Engagement Strategy Defence supports a secure, stable and resilient Pacific Partnering with the Pacific, including through the regional security architecture Assisting Pacific partners to address security challenges A coherent and integrated policy and strategy system Develop a policy and strategy framework that supports long-term planning Delivering capability as promised Deliver on the Defence Capability Plan Optimising the Capability Management System to ensure it is contemporary Realistic scoping and forecasting that can adapt delivery to changing context The impact of our delivery is measured to inform future Develop and embed measurement into our work decisions Implement Operation Burnham Inquiry recommendations Implement the recommendations of the Expert Review Group Policy and legislation to establish the Inspector- General of Defence function Engagement Strategy that reflects Government International engagement priorities for Defence. The Ministry works with the Defence Force to shape The purpose of the Strategy is to: New Zealand’s relationships with foreign militaries and security organisations. We provide advice to identify and prioritise the international defence Government and direction on international defence relationships that add value to New Zealand relationships to maximise New Zealand’s security determine where and how the Ministry and and broader interests. Having a network of strong Defence Force should focus resources that international relationships serves to protect and contribute to international defence engagement, advance New Zealand’s interests. to maximise the value to New Zealand Working with the Defence Force, the Ministry has identify and track initiatives that help us achieve developed an overarching International Defence our defence engagement objectives. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 23
The Strategy ensures defence relationships support Long-term capability planning broader defence, security and foreign policy objectives, and inform decision-making. To deliver on the Government’s policy intentions, the Defence agencies undertake long-term planning The Ministry has a role in representing New Zealand to allow for sustainable, high-value investments to at bilateral, regional and multilateral engagements. be considered. We intend to develop a policy and Major engagement activities include: strategy framework to support this. supporting the Minister of Defence’s Defence’s long-term investment planning assists international travel programme and hosting decision-makers to consider the relative value of visitors to New Zealand military capabilities and indicative capital and supporting the international engagement operating funding tracks over a 15 to 20 year period activities of the Secretary of Defence, Chief of to deliver a sustainable and coherent defence force. Defence Force and tier-two Defence leadership Defence continues to enhance and strengthen the analytical tools employed, including the use of annual or biennial bilateral defence dialogues scenarios to assess future capability requirements. with New Zealand’s defence partners The timing and description, and cost of individual active involvement in regional fora, such as the capability investments in the Plan are indicative. South Pacific Defence Ministers’ Meeting and Investment intentions are subject to Cabinet the ASEAN Defence Ministers’ Meeting-Plus approval of individual business cases justifying the attending major international defence investment, and funding being available through the conferences. budget process, taking into account other government priorities. Video conference attendees for the 2021 ASEAN Defence Senior Officials’ Meeting Plus STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
Defining and selecting military Managing the capability portfolio capability Defence’s capability portfolio management provides The Ministry and Defence Force work together to an important link between planned investments and define the future Defence capabilities that are those projects that are already in delivery. required, and then prepare business cases to Defence has continued to develop and utilise enable Government to make an investment capability portfolio management tools to enable decision. Using the Government’s Better Business planning and options for Government around the Case model, projects progress through the stages future scope and schedule of Defence capability of the investment process, supported by business investments. cases at each stage – from initial thinking in the The portfolio function examines the pipeline of Indicative Business Case, a decision to go to market investments, and potential for deferral and through the Detailed Business Case or Single-Stage reprioritisation so that decision makers have Business Case, and then the final decision on the response options that continue to maximise capability through the Project Implementation efficiency and value. Options cover whole-of- Business Case. enterprise interests, and including readiness and personnel availability. There is also a portfolio monitoring function that provides health reports and occasional deep dives into specific areas of concern so that governance boards can be assured the portfolio isn’t unduly ‘overheating’ or running inefficiently. HMNZS Te Kaha sails out of Esquimalt Harbour, Canadian Forces Base Esquimalt, British Columbia, on 10 September 2020, to conduct sea trials following refit STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 25
Delivering capability The Ministry is managing the delivery of capability projects with a total value of $5.789 billion. Details of these projects can be found in the Ministry’s Annual Report for 2020/21. In the period of this Statement of Intent, the Ministry will deliver two once-in-a-generation platform replacements: four P-8A Poseidon maritime patrol aircraft to replace the P-3K2 Orion fleet five C-130J-30 Hercules transport aircraft to replace the current Hercules fleet. As with the Poseidons, the Hercules will be delivered through the US Foreign Military Sales process. Delivery of the Poseidons will commence in 2023, and the Hercules in 2024. The upgrades to the Anzac frigates will be completed in the early 2020s, at which point the they will provide a greater capability to the Defence Force than at any time since their introduction in the 1990s. Replacement of the Defence Force’s major capabilities will not be a case of like-for-like replacement. The delivery of the replacement vessel to support the NZDF’s dive and hydrographic capability, and the new maritime sustainment capability shows the Defence Force of tomorrow will be very different. All Defence capabilities are now dependent on information capabilities. Space-based systems are increasingly relied on for communication, navigation and transport, and the management of infrastructure. The Defence Force’s capacity to process, analyse and distribute information needs to be enhanced to match the greater levels of data able to be gathered from upgraded intelligence, surveillance and reconnaissance platforms. Steel cutting for the new multi-purpose armoured Bushmaster vehicles STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
Joint management of Defence The purpose of IPTs is to enable a collaborative way of working on major projects across the CMS capability and drive end to end thinking at the project level and The joint Defence Capability Management System across the capability portfolio. This allows Defence (CMS) has been designed to reduce risk and to consider the procurement and sustainment for enhance the successful delivery of Defence capabilities while developing the requirements. This capability projects. It provides assurance that sets up projects for success because all capability projects follow best practice tailored to the components for successful delivery are considered Defence environment and sets the standards which up front and together. governance apply to successfully deliver the IPT membership is based on the technical and expected outcomes and benefits. Key elements of business functions required to define, develop and the CMS are the integrated project team concept; a deliver a supportable capability, and is closely fit for purpose governance structure; and guidance, aligned to the requirements of the project cycle. In tools, practices and policies. These are continuously addition to the core team, an IPT leader is updated to ensure the system remains effective, fit supported by a range of Defence Force and Ministry for purpose, and in line with best practice. internal business partners. This approach integrates professional project management Integrated Project Teams disciplines with specialist military advice. Integrated Project Teams (IPTs) are established for major capability projects. These comprise personnel Governance of major defence capability projects from both the Ministry and Defence Force, and Defence’s joint system of governance and include professional project specialists and subject management of our military capability projects, matter experts. IPTs are designed to deliver reflects the shared responsibilities of the Secretary excellence in capability delivery within the of Defence and Chief of Defence. There are New Zealand context. The IPT Leader is the single governance bodies with overall system and point of accountability for the success of the project. portfolio-level governance responsibilities, as well as project governance bodies that oversee the development and delivery of specific, new or enhanced capabilities. Ministry and NZDF leadership providing governance for major defence capability projects STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 27
Vision for the Capability Management System In December 2020, Defence issued an updated International Exemplar 2025, which sets the vision for the CMS. It describes the seven key components of capability management that Defence strives to operate at a high state of maturity: capability requirement identification and management risk identification, monitoring and management estimation and forecasting of cost, schedule and benefits investment system maturity commercial practice – beyond contract writing, monitoring and delivery capability integration and change management through life capability management and operation excellence. External reviews of the system In 2018, the Ministry commissioned Sir Brian Roche and PricewaterhouseCoopers to undertake a review of Defence Procurement Policies and Practices for Major Capability Projects to confirm that the CMS is functioning as intended. The 2018 Review and a follow-up Review in 2019, affirmed that the CMS provides decision makers with a strong level of confidence and assurance to support informed decision-making.2 A further follow-up review by Sir Brian Roche and PricewaterhouseCoopers commenced in June 2021. Findings will be delivered in the second half of 2021. HMNZS Aotearoa 2 Both of these reviews can be found on the Ministry’s website at https://www.defence.govt.nz/publications. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
Implementing Operation Burnham to implement the recommendations of this review once it has been considered by government. Inquiry Recommendations In February 2021 Cabinet directed the Ministry lead The Ministry is working with the NZDF and other the development of policy and legislative advice on relevant agencies on implementation of the the recommendation to establish an independent recommendations in the Report of the Government Inspector General of Defence. Policy development Inquiry into Operation Burnham and related matters is well underway. An officials steering group with (the Report) that was publicly released on 31 July representatives from a number of agencies has 2020.3 been established as directed by Cabinet. The One of the recommendations was to establish an Ministry reports to the Minister of Defence and the expert review group to enable the Minister to satisfy Attorney-General who are jointly responsible for this himself “that NZDF’s organisational structure and work. record-keeping and retrieval processes are in The other two Inquiry recommendations related to a accordance with international best practice and are Defence Force Order on civilian casualties (now sufficient to remove or reduce the possibility of completed), and detention policies and procedures organisational and administrative failings of the type (led by the Ministry of Foreign Affairs and Trade). identified in [the Inquiry’s] report”. The Ministry has Further details about the Ministry’s involvement in supported the Expert Review Group, chaired by that work is provided in the Ministry’s 2020/21 former Auditor-General and Controller, Lyn Provost, Annual Report. under its audit and assessment function. The review report was presented to the Minister of Defence in September 2021. The Ministry will work with NZDF Ministry staff meeting under COVID-19 restrictions 3 The Report of the Government Inquiry into Operation Burnham and related matters is available from https://operationburnham.inquiry.govt.nz. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 29
ENGAGING NEW ZEALANDERS ON DEFENCE 4 TE WHAKATORO I TE KAUPAPA WAONGA KI A NGĀI AOTEAROA Our objectives What we’ll do New Zealanders understand security issues, Defence's Develop and implement a communications role and the value of the Ministry strategy Develop a statement of transparency for Defence We actively seek the input of New Zealanders on our Develop a stakeholder engagement framework work that is used by Ministry staff to lead their engagement activities information about the initiation and progress of the Understanding security issues and major, multi-year Defence capability projects Defence decisions managed by the Ministry. An independent review process of the information compiled for each edition The Ministry will expand its communications to the is undertaken currently by Audit New Zealand and public on Ministry activities, decisions on Defence provides a level of assurance to readers. policy settings, the deployment of Defence Force personnel, and Defence capability. The main channel for this information is currently the Engaging on Defence Ministry’s website. The Ministry will undertake work to ensure its In addition to proactively publishing defence advice domestic engagement work is effective and identify to Cabinet and the associated decisions, the opportunities for further outreach. This is separate Ministry produces an annual Major Project Reports to work engaging industry referred to in focus area for the Foreign Affairs, Defence and Trade Select 2, and the international engagement referred to in Committee. These provide highly detailed focus area 3. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
4 OUR CAPABILITY Ō Mātou Āheinga ●●●● STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 31
HOW THE MINISTRY DELIVERS OUR WORK delivery staff include project management ABOUT THE MINISTRY professionals who lead multi-million dollar projects The Ministry is a civilian agency of about 165 staff, which acquire military equipment for the Defence most of whom are based in Wellington. Our Force. numbers have grown from around 60 staff employed The Ministry’s culture and the way we work is in 2015. Our staff come from a variety of important to the organisation. backgrounds. We employ policy advisors and analysts, corporate and finance staff. Our capability Our Spirit and Character is to be: INFLUENTIAL COLLABORATIVE COURAGEOUS KIA WHAI MANA KIA MAHI TAHI KIA KAHA Our work shapes the agenda and We work together and in We do the right thing, even when our advice is persuasive partnership. We build trusted that is personally and relationships to understand what’s professionally hard going on and get things done DYNAMIC PRAGMATIC PROFESSIONAL KIA HIHIRI KIA WHAI KIKO KIA NGAIO We see where change will improve We find a way; we are practical, People know us for our integrity, results, we self-start it, and we see resourceful, and hard-nosed skills and attitude it through The Ministry is organised around its civilian advice communications services, and some security and capability delivery roles. services. The Ministry has shared services arrangements with The Ministry is made up of four divisions: the New Zealand Defence Force for property, IT and Governance, Policy and Capability People and Finance Planning Delivery Executive Services STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
We believe our size is an advantage because each person can see the results of their own effort in what we collectively deliver. In this way, every person counts. To continue our success, we have to attract and retain the best people. Our aim is to be a place where people do their best work, get great opportunities, see their contribution recognised and feel both valued and included. During this course of this Statement of Intent, the Ministry will develop a refreshed People Strategy that draws on the Papa Pounamu priority commitments for the public service. The majority of the Ministry’s departmental costs are on personnel. Operating expenses Personnel expenses $25m $20m $15m Ministry staff members collaborating to develop a new organisational strategy $10m $5m $m 2016 2017 2018 2019 2020 2021 Figure 5: Departmental expenditure by category in 2020/21 (top) and over five years (bottom) STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025 33
VOTE DEFENCE The components of our operating model can be summarised as: The Ministry delivers its work through a departmental appropriation as well as operating a People. People who can deliver results through Crown capital appropriation on behalf of the Minister partnership, in accordance with our values, and of Defence for its work procuring major military who get great opportunities through their role equipment. with the Ministry. $25m Partnerships. We deliver in partnership with the New Zealand Defence Force, our sector, $20m Defence Industry suppliers and our international defence partners. $15m Customers. We deliver for the Government, which has determined our priorities; for the $10m Minister of Defence, who receives our advice; and for the Defence Force service men and $5m women, who use the defence equipment we deliver. $0m Results. Defence has the people, policies relationships and combat capabilities to meet the Government’s objectives now and in the $600m future. $500m $400m $300m $200m $100m $0m Figure 6: The Ministry's work is delivered through a departmental appropriation (top) and a Crown capital appropriation (bottom) for delivering Defence capabilities Crown funding for the delivery of Defence capabilities is allocated after Cabinet approval of business cases for the specific projects. OUR STEWARDSHIP PRIORITIES The Ministry manages itself in the same way it manages its business activities – with both the short term and the longer term in mind. Our operating model is to deliver through people and partnerships, for customers and results. Our people are our most valuable asset and we seek to maximise their contributions through a strong learning and development culture. STATEMENT OF INTENT TAUĀKĪ WHAKAMAUNGA ATU 2021-2025
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